Here’s an interesting video speaking to the factors that go into the TCO of owning an EV.
Total Cost of Ownership
- Thread starter CapeCodI5
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Very good balanced video. There are certain states where EV incentives are high, and Electricity costs are low enough (like Oregon, Colorado) where the Cost of Ownership advantages seem to be a no-brainer. If you are a multi-car family in one of these states, it seems not very smart to have an EV.
Only problem is, with the chip shortage, and gas prices so high, dealers are marking up the costs of EVs even more than gas cars, raising the total cost of ownership. Never mind the fact that you have to wait a long time to get almost any EV right now.
Only problem is, with the chip shortage, and gas prices so high, dealers are marking up the costs of EVs even more than gas cars, raising the total cost of ownership. Never mind the fact that you have to wait a long time to get almost any EV right now.
Took a look at the video also. Then I had to look into the comments section which is always like trying to not look at crashed cars as you drive by. Full of the usual naysayers and ignorance as usual.
My situation is somewhat different as I am self employed and can take down the EV depreciation as a business expense. In 2016 after incentives I paid about $10,000 more for a new 30kwh Leaf than a comparably equipped ICE vehicle. Doing the business math it was saving me about $1700 a year in operating costs which amounts to a 17% ROI. Pretty damn good I'd say. I traded up in 2018 to get the last of the incentives in Ontario and gain some extra range with a 40kwh Leaf S. There was a depreciation whack to be sure which resulted in a lower ROI but now with the spike in fuel costs I'm saving around $2800 a year in fuel costs alone and have had zero maintenance except for seasonal tire changes and brake cleaning/lubing.
I'm amazed that more small businesses that service local markets in urban/suburban areas haven't twigged on to this yet. Mind you at the moment there really aren't any options out there to purchase E-powered vans and pick ups but if you can use something like a Leaf you've got it made. It's also surprising that the manufacturers haven't figured out this as well. Several of my skeptical aquaintances just can't get over the sticker price to see the bigger picture. You can try to explain TCO until you're blue in the face and it just won't catch.
My situation is somewhat different as I am self employed and can take down the EV depreciation as a business expense. In 2016 after incentives I paid about $10,000 more for a new 30kwh Leaf than a comparably equipped ICE vehicle. Doing the business math it was saving me about $1700 a year in operating costs which amounts to a 17% ROI. Pretty damn good I'd say. I traded up in 2018 to get the last of the incentives in Ontario and gain some extra range with a 40kwh Leaf S. There was a depreciation whack to be sure which resulted in a lower ROI but now with the spike in fuel costs I'm saving around $2800 a year in fuel costs alone and have had zero maintenance except for seasonal tire changes and brake cleaning/lubing.
I'm amazed that more small businesses that service local markets in urban/suburban areas haven't twigged on to this yet. Mind you at the moment there really aren't any options out there to purchase E-powered vans and pick ups but if you can use something like a Leaf you've got it made. It's also surprising that the manufacturers haven't figured out this as well. Several of my skeptical aquaintances just can't get over the sticker price to see the bigger picture. You can try to explain TCO until you're blue in the face and it just won't catch.
teslarati97
Well-Known Member
Let's be very clear on this. TCO analysis is used to justify the high MSRP for a new BEV over an equivalent new ICE vehicle. For example, Tesla equates their Model 3 RWD to a Toyota Camry each year on their impact report to investors and shareholders. If TCO of BEV is less than TCO of ICE equivalent then BEV would offer long-term cost savings in 5+ years according to Tesla.
TCO is not as useful comparing BEV to BEV because Tesla does not do it as per their impact report.